Malloy’s decision to coddle the rich = State Budget Deficit

When Governor Malloy proposed his $1.5 billion tax increase last year, anyone making over $1 million dollars was spared any increase in the state income tax rate.

Concerned that the super-rich in Fairfield County might leave Connecticut – despite the fact that the income tax rate is higher in New York and New Jersey – and much higher in New York City – Malloy’s tax package only increased the income tax rate on people making LESS THAN $1 million.

In addition, he made it clear to the Democratic Legislature that he would not sign any tax package that included a higher rate on millionaires.

So while the Bush (and Obama) Tax Cuts give Connecticut’s super-rich an extra $156,000 in income tax breaks each year – these people saw no increase in their state income tax rate – while the rest of us did.

The amount lost to this give away to the rich – about $350 million. This year’s projected budget deficit – about $350 million.

So Connecticut, get ready for Governor Malloy to announce more budget cuts this week.

On top of which, despite a huge revenue shortfall for next year, the Governor announced last week that he was ruling out any tax increase on these millionaires for coming year.